On 3 September, our client, Finsbury Food Group plc (“Finsbury”), acquired Ultrapharm Limited (“Ultrapharm”), a Free From bakery manufacturer. The acquisition of Ultrapharm supports the Group’s ongoing strategy to further diversify its product capability into high growth areas.
Established in 1993, Ultrapharm employs more than 240 staff across manufacturing sites in the UK and Poland. As a specialist ‘Free From’ bakery, the business has an extensive product range including bread, buns & rolls and other morning goods. Ultrapharm has a diverse customer base with long term blue-chip customers, including Finsbury itself, where it supplies Free From products to Lightbody Europe. The opportunity to invest in the acquired sites and to expand the Group’s existing facilities to manufacture Free From products, a category of which the Group has previous expertise, provides significant upside sales potential to the Group in a growing segment.
For the year ended 31 December 2017, Ultrapharm generated revenue of £19.5 million, up 35% from £14.5 million for the comparative period in 2016. The acquisition will be earnings accretive immediately post completion.
The total consideration payable is split with £17 million payable in cash at completion, up to £3 million payable in annual instalments to the period to 30 June 2021 and a final incentive payment subject to performance criteria over the period to 30 June 2021 estimated at approximately £1.0 million.